Apple’s Profits and Sales Below Expectations

Apple will turn away some customers today, and close its stores for several hours. The closings are to allow Apple employees to watch a company webcast of a memorial service – celebrating the life of Steve Jobs. Apple says it’s a private event. Jobs died earlier this month. The service comes one day after Apple reported quarterly profits

For the first time since 2004, Apple’s quarterly profits and sales were below expectations on Wall Street. Apple shares fell more than 6 percent in pre-market trading. But despite investor disappointment, Apple’s numbers are still very strong. During the 3rd quarter company profits soared 54 percent. Sales were up 39 percent. CEO Tim Cook says the current quarter will be even better. Sales of the new iPhone 4S are expected to give another boost to Apple’s bottom line.

Intel shares are up 4 percent with a strong report from the world’s largest chip maker. Profits rose 17 per cent in the 3 rd quarter. The company says stronger sales of processors for laptop PCs and servers are a plus. Intel has raised its outlook for the current quarter.

The consumer price report comes out this morning. Inflation is up this year, and higher prices are taking a bigger bite out of household budgets. Consumer prices are now nearly 4 percent up on a year ago. The rise is well above the average increase in wages.

Moody’s Investor Service has downgraded Spain’s government debt rating. A report in Britain’s Guardian newspaper says Germany and France have reached agreement to boost the Eurozone’s debt relief fund to nearly $3 trillion.